Sometimes, I miss trades, because I am at a meeting, on the phone or away from my desk. Every Morning when I
wake up the first thing I do is turn on CNBC. I watch to see the
stocks that are moving in pre-market trading. I saw NAV jumping higher on
a variety of news. So, then I went to my Unusual Options Activity
scanner and noticed a trader bought 12,000 NAV April 30 Calls for
$.65. This was the biggest order over the last 10 trading days. Let me show a breakdown of how much money
this trader made.
Paper bought 12,000 NAV April 30 Calls for $.65
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)
Risk: $65 per a lot
Reward: Unlimited
Breakeven: $30.65
Cash Outlay for this Trade: $780,000
Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short
On 3.8.2013, these Calls are worth $6.15, so lets breakdown this trades Profits.
$6.15- $.65 * 100 * 12,000= $6.6 Million Dollar
If a trader risked $1,000 on this trade and bought 15 Options they
would have netted $8,250
If a trader risked $5,000 on the trade and bought 75 Options, they
would netted $41,250
This is just another example of trading with the BIG money and Hedge
funds in the BEST Live Trading Room http://bit.ly/108XTgh as I
breakdown over 2,000 trades in a day and also tweet them on our
Premium Twitter feed http://bit.ly/WmtfI4
By the way, SEC leave those HNZ traders alone.